New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Essential Year-End Tax Strategies for Masco Employees: What You Need to Know Before 2023

Healthcare Provider Update: Healthcare Provider for Masco: Masco Corporation, primarily recognized for its home improvement and building products, collaborates with major health insurance companies for employee health coverage. The specific providers may vary by plan and location, but typically involve larger insurers such as UnitedHealthcare, Anthem (Elevance Health), or Blue Cross Blue Shield. Anticipated Healthcare Cost Increases in 2026: In 2026, Masco employees may face substantial increases in healthcare costs, with some states projecting premium hikes exceeding 60% due to a confluence of factors. The potential expiration of enhanced subsidies from the Affordable Care Act (ACA) coupled with rising medical costs-such as higher hospital fees and increasing drug prices-may push out-of-pocket premium payments up by over 75% for the majority of policyholders. As insurers respond to these pressures with significant rate increases, it will be crucial for employees to strategically plan their healthcare expenses to mitigate financial burdens in the upcoming year. Click here to learn more

Here are some things for Masco employees and retirees to consider as they weigh potential tax moves between now and the end of the year.

1. Defer income to next year
Masco employees must consider opportunities to defer income to 2023, particularly if you think you may be in a lower tax bracket then. For example, you may be able to defer a year-end bonus or delay the collection of business debts, rent, and payments for services. As a Masco employee, doing so may enable you to postpone payment of tax on the income until next year.

2. Accelerate deductions
Masco employees and retirees should also look for opportunities to accelerate deductions into the current tax year. If you itemize deductions, making payments for deductible expenses such as medical expenses, qualifying interest, and state taxes before the end of the year (instead of paying them in early 2023) could make a difference on your 2022 return.

3. Make deductible charitable contributions
As a Masco employee, if you itemize deductions on your federal income tax return, you can generally deduct charitable contributions, but the deduction is limited to 50% (currently increased to 60% for cash contributions to public charities), 30%, or 20% of your adjusted gross income (AGI), depending on the type of property you give and the type of organization to which you contribute. (Excess amounts can be carried over for up to five years.)

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4. Bump up withholding to cover a tax shortfall
As a Masco employee, if it looks as though you will owe federal income tax for the year, consider increasing your withholding on Form W-4 for the remainder of the year to cover the shortfall. Time may be limited for Masco employees to request a Form W-4 change and for their employers from Masco to implement it in time for 2022. The biggest advantage in doing so is that withholding is considered as having been paid evenly throughout the year instead of when the dollars are actually taken from your paycheck. This strategy can be implemented by Masco employees to make up for low or missing quarterly estimated tax payments.

5. Save more for retirement
Deductible contributions to a traditional IRA and pre-tax contributions to a Masco-sponsored retirement plan such as a 401(k) can reduce your 2022 taxable income. As a fortune 500 employee, if you haven't already contributed up to the maximum amount allowed, consider doing so. For 2022, Masco employees can contribute up to $20,500 to a 401(k) plan ($27,000 if you're age 50 or older) and up to $6,000 to traditional and Roth IRAs combined ($7,000 if you're age 50 or older).* The window to make 2022 contributions to a Masco-sponsored plan generally closes at the end of the year, while you have until April 18, 2023, to make 2022 IRA contributions.

*Roth contributions are not deductible, but Roth-qualified distributions are not taxable.

6. Take the required minimum distributions
If you are a Masco employee age 72 or older, you generally must take required minimum distributions (RMDs) from traditional IRAs and Masco-sponsored retirement plans (special rules apply if you're still working and participating in Masco's retirement plan). You have to make the withdrawals by the date required — the end of the year for most individuals. The penalty for failing to do so is substantial: 50% of the amount that wasn't distributed on time. As a fortune 500 employee, making these distributions in a timely manner is essential as to avoid the late penalty.

7. Weigh year-end investment moves
Masco employees and retirees shouldn't let tax considerations drive investment decisions. However, it's worth considering the tax implications of any year-end investment moves that you make. For example, if you have realized net capital gains from selling securities at a profit, you might avoid being taxed on some or all of those gains by selling losing positions. As a Masco employee, any losses over and above the number of your gains can be used to offset up to $3,000 of ordinary income ($1,500 if your filing status is married filing separately) or carried forward to reduce your taxes in future years.

Tags: Financial Planning , Tax , Retirement , 2022

What is the purpose of Masco's 401(k) Savings Plan?

The purpose of Masco's 401(k) Savings Plan is to help employees save for retirement by providing a tax-advantaged way to invest their earnings.

How can Masco employees enroll in the 401(k) Savings Plan?

Masco employees can enroll in the 401(k) Savings Plan by completing the enrollment process through the company's benefits portal or by contacting the HR department for assistance.

What types of contributions can employees make to Masco's 401(k) Savings Plan?

Employees can make pre-tax contributions, Roth (after-tax) contributions, and possibly catch-up contributions if they are age 50 or older in Masco's 401(k) Savings Plan.

Does Masco offer a company match for 401(k) contributions?

Yes, Masco offers a company match for employee contributions to the 401(k) Savings Plan, which helps employees grow their retirement savings.

What is the vesting schedule for Masco's 401(k) company match?

The vesting schedule for Masco's 401(k) company match typically requires employees to work for a certain number of years before they fully own the matched contributions.

Can Masco employees take loans against their 401(k) Savings Plan?

Yes, Masco allows employees to take loans against their 401(k) Savings Plan, subject to specific terms and conditions outlined in the plan documents.

What investment options are available in Masco's 401(k) Savings Plan?

Masco's 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and possibly company stock.

How often can Masco employees change their contribution amounts to the 401(k) Savings Plan?

Masco employees can typically change their contribution amounts to the 401(k) Savings Plan on a quarterly basis or as specified in the plan guidelines.

What resources does Masco provide to help employees understand their 401(k) Savings Plan?

Masco provides educational resources, such as seminars, online tools, and access to financial advisors to help employees understand their 401(k) Savings Plan.

When can Masco employees start withdrawing from their 401(k) Savings Plan?

Masco employees can generally start withdrawing from their 401(k) Savings Plan without penalties at age 59½, but specific rules may vary.